I've just read the thread and can see your point. You explained...

I've just read the thread and can see your point. You explained the terms quite clearly, thanks for that as I had a few bits of information missing when getting my head around the deal.

But I really don't know if this is such a bad deal COMPARED to a traditional cap raise.

Lets put the other scenario - A traditional cap raise for $46mil.

I haven't calculated the VWAP, but the price at Announcement was 3.9c, so we can work off that. With a 2.5% discount to Insto's (if we were lucky) that brings the share price down to 3.8c (rounded down).

To get the $46m (up front) we would have to issue a further 1.21B shares, then with the usual 1-for-1 option incentive which would put another 1.21B worth of shares on the market. Thats a total of 2.42b shares from a traditional cap raise.

I only say up front because I imagine IMU probably don't/can't want to wait 2-3 years for the options to come through (if they ever do). The above scenario could always be changed to suit the current funding split $20m then $26m.

Either way it's a shit load of shares put into the market ripe for shorting. So whilst you have a point to the negative scenarios that may arise from the current deal, any other cap raise would have the same effect IMO.